Cryptocurrency is everywhere now. We see it in the news, being discussed in investment circles, and driving the development of new technologies. The very concept seems to be constantly evolving.
Currency trading has always been a key element of global economies, but are cryptocurrencies a part of that system, or a new element that has come along to change the game?
Ask any three economists, and you’ll get three different answers to these questions. Investors are hungry for this information, especially those looking for new and lucrative opportunities.
Some have already made a fortune by getting in on the ground floor of a given cryptocurrency and then selling out. Others have invested in expensive hardware in order to produce the currency, but margins are thin. Many are sitting on the sidelines, looking to jump in at the right moment.
With all these motives and strategies in play, many are starting with one simple question: Are people really participating in this market as investors, generally speaking? Is the cryptocurrency market popular, or just a fantasy?
Comparing the Data
A fair question, when determining if cryptocurrency trading is really popular, is: compared to what?
Compared to regular currency trading and foreign exchange markets, Cryptocurrency trading is incredibly popular. This is because large sections of many currency markets are unavailable to individual investors, while literally, anyone can buy Cryptocurrency safely and easily using tools such as Binomo. It is merely a matter of selecting your currency of choice, and converting your cash resources into that currency.
Using reliable tools adds a level of security and means of tracking these investments since these are essentially over the counter, unregulated trades. The ability of individuals (albeit with great time and effort) to literally create this currency for themselves broadens the market even further.
With that said, choosing which currency to invest in is absolutely vital. Not all cryptocurrencies are created equal, and while some may represent an incredible opportunity, others are an absolute waste of money.
Why Popularity Matters
The main and most important difference between these new currencies is their popularity. If people are using the currency, it will develop a value. If they aren’t, invested funds may stagnate or even lose all value.
With nothing underpinning the currency, the value is based entirely on its popularity- both as an investment and as buying power. Both factors are vital, since without buying power the currency can’t inflate in value, and without investment inflows, there is no market for trade.
So, how do you determine the popularity of your chosen currency? Check the trade volume on tools like Binomo before you invest.
A high volume in trading shows that the currency has a robust place in the market, and it is more likely you will be able to sell your investment if and when you need to. A lack of trade volume indicates a much more risky investment, and while those markets may have yet to take off, there is no guarantee you will be able to use the currency even if the value increases. The trading volume is, quite literally, the popularity of the investment…an absolutely vital consideration when considering this investment.